Ethics CH13
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The board committee that administers and approves salaries and benefits of high-level managers in a company is called:
Compensation
Trading stocks in advance of large institutional investment moves is called:
Front-running.
An argument that opposes the idea of high executive pay is:
High salaries divert resources that could be used to invest in the business.
The "agency problem" arises when:
Managers act in their own interest, rather than in the interest of shareholders.
The mission of the Securities and Exchange Commission (SEC) is to:
Protect shareholders' rights by making sure that stock markets are run fairly.
